Aggregates tax plan `cynical'

A NEW Government levy - labelled a cynical stealth tax - will have a disastrous effect on small businesses in the quarrying industry and could cause the loss of more than 7,000 jobs, the High Court was told yesterday.

A NEW Government levy - labelled a cynical stealth tax - will have a disastrous effect on small businesses in the quarrying industry and could cause the loss of more than 7,000 jobs, the High Court was told yesterday.

The British Aggregates Association (BAA) and two individual companies are challenging the introduction of the levy, which will be imposed on aggregates subject to commercial exploitation in the UK.

Gerald Barling QC, appearing for BAA, argued at the start of a three-day hearing that it breached both European Community and human rights laws, and the levy could not be applied lawfully.

He put forward that the levy, devised by the Treasury, was intended to address the environmental costs of quarrying but would have the opposite effect.

The plan to introduce it on April 1 would be "premature, irrational and an abuse of power".

Outside court, BAA director Robert Durwood accused the Treasury of introducing measures which will dramatically put up the cost of maintaining the country's infrastructure as well increasing local council taxes.

Mr Durwood said, "Local authorities buy 40pc of the aggregate we produce for roads, buildings, bridges and the rest of the country's infrastructure.

"If local councils want to keep up with their maintenance and building programmes they are going to have to increase taxes like council tax and business rates.

"This is something that the public has not picked up and the whole thing amounts to a very cynical stealth tax.

"There is no environmental benefit, and in fact it will damage the environment while shutting down small quarry companies."